AN independent financial watchdog has slated the Government for leaving Swindon Council with no choice but to heap another inflation-busting hike in council tax on residents.

In a hard-hitting report, the Audit Commission said civic chiefs in Euclid Street were expected to perform extra services, but without additional cash to do so.

The report, which is published today, said council tax rises were exceptionally high, there was a "clear link" between the size of cash settlements from Whitehall and increases in council tax and recommend changes to the way funding is calculated.

Last month the Government gave Swindon just £124.9 million to fund its services next year with the rest having to be made up in council tax increases.

In real terms that means poorly performing Swindon gets a 4.2 per cent rise on last year's settlement below the national average of 4.7. It also makes Swindon one of the worst 20 funded authorities in the country.

Council leader Mike Bawden (Con, Old Town and Lawns) said: "The Audit Commission really vindicates our argument that over the past few years the Government is guilty of total neglect to authorities like Swindon. We've had to raise council tax by 15 per cent over the past two years and next year we're facing another very difficult decision."

The council's decision-making cabinet meets on Monday to discuss the merits of three possible council tax rises five per cent, seven-and-a-half per cent or 10 per cent before next year's budget is finally settled in February.

A massive amount of the authority's £180 million budget will be ploughed into the zero-rated social services department, which is currently running £800,000 over budget.

The council's lead member for social services, Jemima Milton (Con, Wroughton and Chiseldon), says an extra £2 million needs to be found to keep the department running at the level it is now something she says it will struggle to do even with a 10 per cent hike in rates.

She said she could not rule out cuts, with non-statutory grants to places like family and children's centres, the favourites for the chop.

Coun Milton said: "People can't have a low council tax and keep all the services. We will struggle to keep all our services open with a 10 per cent rise we could do it, but it would be a struggle," she said.

"A rise of 10 per cent would be my absolute top, but I realise there are a lot of people in the town who can't afford this sort of rise. Swindon has young people with new houses who are struggling to pay their mortgages and don't want to pay for social services if they feel they don't use the service.

"We have got to look after the most vulnerable in society and I'm very angry this settlement is only affecting these people. Reducing services in other areas would not affect the most vulnerable."

Swindon's council tax has risen by more than 30 per cent in the past two years with a Band D taxpayer now paying more than £1,000 in rates for the first time.